New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-14
TROUBLES OF THE PHOENIX.
STOCKHOLDERS ASSES sED s5oo.ooo
TALK OF DEMANDING THE RESIGNATION OF THE
MANAGERs--wHAr STOCKHOLDERS AND or
FICERS SAY.

MANAGERs-wHAT STOCKHOLDERS AND or
FICERS SAY.
Insurance men were deeply Interested yesterday In the
report OF the condition OF the Phoenix Fire Insurance
Company OF Brooklyn made by Chief Examiner shannon
and Ohm A. Horan OF the State Insurance Department,
The call on the company to make good an Impairment Of
1896 562 in its capital or reduce Its capital stock
100000. surprise to Insurance men. For some
time reports circulated the effect that the
company paying dividends not earned and that It's
annual report incorrect This annual report as
sworn to by officers OF the company on December
81 last showed a net surplus OF S557.096 70, whereas
according to the Insurance Department there was NOS
only surplus at that time but the companys capital
was impaired to the extent OF S97.959 Some OF the
stockholders very indignant yesterday this
condition OF affairs, and Of them threatened suit
for perjury.
The directors held meeting yesterday and discussed
the situation at some length 1t was finally voted BY the
board the stockholders $500 900 make good
the deficit In Its capital Two OF the stockholders after
ward remarked to TRIBUNE reporter that the amount
could be raised BY the present management. the
stockholders will not pay IT, 1--WE shall take steps at
once said OF the stockholders to call meeting OF
the OF the capital stock with 4 view of demand
ing the resignation OF the present officials President
Crowell and the members OF his family draw about
100000 year In salaries Some years there was
transportation OF funds. and the matter was COM
promised.
Au5tln COrDln ann one OF the OtDer
disguised that they resigned and sold their stock though
believe that Mr.. Corbn has since that time bought
other stock But as long the company continued to
pay 10 per dividends the stockholders satisfied
TO let things along In the old way and leave their
proxies with Mr. Crowel The anxiety to keep control
has led the into It's present trouble Pres
dent Crowelps talk about the companys goodwill being
worth ST. 100000 as see reported in one newspaper Is
absurd He knows we'll enough that 1t Is not worth one
cent 1t is founded public confidence which, II lost.
would leave the company stranded The management
has been growing careless The marine business has al
ways been losing the company took risks that
other companies would take. n this part Of the
business had beeu off there would have been such
trouble confronts In 1885 the COM
pany lost 100000 in OF Its receipts in tho
Marine Department rhe officers displayed a good deal
OF nerve IN claiming surPu, OF sSo7oS6 In December
100000 In the capital But they displayed sill more
% Sa Of ne ns ss sSsa ses
was an impairment OF capital to the extent OF nearly
100000 Using capital stock to pay dividends is queer
kind OF MANAGEMENT"
Philander Shaw, secretary Of the company was asked
pairmeDt capital Ninety days" reply. "some
OF the largest stockholders present at the meeting
tas morning and they all agreed TO the plan to make
the deficiency in preference to reducing the capt.
tai There will lie no trouble about It, The principal
loss has been in the marine department We concluded
IN January to out Of that, hut II cannot be done az
Then the Jumbo business, as 1t has been called,
or the plan OF writing large policies on one risk uts
brought some unexpected losses. though atoeether 1t
shows a handsome prOnt We lost 100000 ~ TWO hres
In sugar rehnerrs aklng sucb large RISKS on renneres
not irst-class underwriting. But We learn as we'll
as other folks. and we have now gone TO the
other extreme OF taking no risks In
that class such property. | don't think
that the insurance department has ruled altogether
night. but we will get along without any trouble
our capl a was greatly impaired by the business OF
1886 70 per cent OF the losses Of that year being att6
uaDlc TO marine disasters. his business we shall
give up At the beginning OF the present. year we
thought had net surplus OF S557Oso - according
Ia published statement but thus the department ex-
amner, wiped out aud went S96.00O into tue capital,
pI .l ftfftf vaftr
have already stated. will be more than made
up by the voted We glory In the fact that
passed through the chicago and Boston fires without
ever pAssing dividend"
The Pie tx was organized In 1853. with the capital
stock carries time 1t did the largest bust
the line Of marine and nre risks In the country
The officers and directors are stephen Crowell. pres
dent; william K. Crowel. vice president; Philander
shaw secretary: George H. Fske. assistant secretary;
John VI Hicks George W. Bergen. Augustus otuiweli,
Charles +. Bloom Edwin T. Rice. f. W. Crowe. George
L. sheldon william T. Beae. Arthur d. Fiske. ~ Eng
land Arthur g. Graves T.. H. Roberts Thomas Jones, "a
leb = woodruff. Henry McConn, William W. Thomas
Thomas Bnrch George W. GregersOn. townsend DAVIS,
Albion X. BOaud. George ngrahan, samuel I. upper
John Howard Latham, Charles 4. Mather Tho com
panys statement issued January last, presented the
following figures:
Cal 1000 90
Gross surplus. 3SS 81 10
Gros. asset, ................s6.3s3 III ss
In their report the subject the insurance examiners
say that the company Included III us statement OF pro
miums or collection S26,3O9 due from the
Western and southern department whom there was MOTH
ing due: also Sl4.379 from agent named Brown.
which was oHse by commissions duo him also some
other IKE Items The examiners say that no estimate
made IN the annual report Of losses except the
proofs of loss had been received though the company
had knO ledge of J.5l7 In inland losses, since palu,
and OF SI3 PIP OF tire losses
speaking stock certificates the examiners say that
OF tue certificates issued twenty or more years ago
and reported cancelled were not 10 De foGDd OWING 10
loose in which they had been cared Tor